c r e d i t c o l u m n Bruce Nathan, Esq.

Size: px
Start display at page:

Download "c r e d i t c o l u m n Bruce Nathan, Esq."

Transcription

1 N a t i o n a l A s s o c i a t i o n o f C r e d i t M a n a g e m e n t January 2009 The Publication For Credit & Finance Professionals $7. 00 c r e d i t c o l u m n Bruce Nathan, Esq. Recent Court Decisions on Consignments and Other Security Arrangements: The Benefits of Aggressive Creditor Action and the Pitfalls of Failing to Document Properly! n certain industries, vendors frequently enter into consignment arrangements to facilitate their sale of goods. In the typical consignment, the vendor/consignor delivers goods to the buyer/consignee, retains title to the goods and does not record a sale until the consignee reports that it sold or used the consigned goods or, if the consignment agreement provides, kept the goods on hand for a fixed period of time. A consignor has enhanced rights to the goods delivered to the consignee so long as the consignor satisfies all the requirements for a protected consignment interest. However, rights can be easily lost if a consignment creditor fails to take aggressive action to collect and protect its claim in response to its customer s bankruptcy filing and also if the creditor fails to dot its i s and cross its t s in the documentation that creates and secures payment of its consignment claim. The United States Bankruptcy Court for the District of Delaware, in In re Whitehall Jewelers, Inc., recently dealt with whether a Chapter 11 debtor could sell consignment goods free and clear of the interests of consignment creditors. The Bankruptcy Court refused to approve the sale without first ruling on whether the consigned goods delivered to Whitehall were property of Whitehall s bankruptcy estate. That required Whitehall to first commence separate lawsuits against each of the 124 consignment creditors to determine ownership of the consigned goods. The court s decision shifted the balance of power in the case in favor of the consignment creditors, thereby enabling them to reach a favorable resolution of their consignment claims. In another case, the United States District Court for the Eastern District of Virginia, in In re the Holladay House, Inc., upheld the Bankruptcy Court s ruling that a consignment creditor had a prior perfected interest in only the inventory delivered under its consignment agreement with the debtor, and not also in all of the debtor s other non-consigned inventory as the creditor had intended to obtain under its consignment and security agreement with the debtor. While the debtor had granted the creditor a security interest in all debtor s inventory in the consignment and security agreement, the creditor s UCC financing statement limited the creditor s perfected security interest to its consigned goods. The court s ruling illustrates the importance to a secured creditor of conforming the collateral description in its security agreement and Uniform Commercial Code

2 (UCC) financing statement. Otherwise, the secured creditor will not be able to recover all the collateral it had bargained for. A real downer! Consignments In a consignment, the consignor retains title to the goods delivered to the consignee. Title usually passes to the consignee upon the consignee s use or sale of the goods. The consignor issues an invoice after the consignee s reported sale or use of the goods, and the consignee can return unsold or unused goods to the consignor. The terms of the consignment are frequently governed by a written agreement between the consignor and consignee. The agreement should contain all of the necessary terms and conditions to protect the consignor s interest in the consigned goods. Consignments are also governed by each state s UCC. UCC Article 9 governs most consignment transactions. UCC Section 9-102(a)(20) defines a consignment as a transaction in which a person delivers goods to a merchant for purposes of sale, and (a) the merchant deals in goods of that kind under a name other than the name of the person making delivery, is not an auctioneer and is not generally known by its creditors to be substantially engaged in selling the goods of others; (b) the goods must have a value of at least $1, at the time of delivery; (c) the goods are not consumer goods immediately before delivery; and (d) the transaction does not create a security interest. The consignor should file a UCC financing statement describing the goods in the correct jurisdiction in order to maintain a protected interest in the goods. Otherwise, the consignee s creditors can obtain judicial liens and security interests in the goods with priority over the consignor s unperfected consignment interest. According to UCC Section 9-317(a), a judicial lien creditor, including a bankruptcy trustee or debtor-inpossession, has priority over an unperfected consignor. UCC Article 9 allows a consignor to file a UCC financing statement on its own, without the consignee s signature, as long as there is a consignment agreement executed or otherwise authenticated by the consignee that describes the consigned goods. The consignor uses the same UCC form that a secured creditor uses in perfecting a security interest in personal property collateral. The consignor must jump through additional hoops to obtain priority over the rights of the consignee s secured lender, or other creditor, with a prior blanket security interest in the consignee s inventory. According to UCC Section 9-103(d), a consignor has a purchase money security interest in its consigned goods. As such, the consignor would have priority over creditors holding prior floating liens in the consignee s inventory, including the consigned goods, if the consignor satisfies all of the purchase money security interest requirements contained in UCC Section These requirements include (a) filing a UCC financing statement describing the goods prior to the consignee s receipt of the goods; (b) sending an authenticated notification to the holders of conflicting security interests in the consignee s inventory that states that the consignor has, or expects to, acquire a consignment interest in the goods and describes the goods; and (c) receipt of such notice by the holders of conflicting inventory security interests within five years before the consignee s receipt of the goods. The Whitehall Jewelers Case The debtors, Whitehall Jewelers Holdings Inc. and affiliated entities, were a nationwide specialty retailer of fine jewelry. Whitehall operated 373 retail stores in 39 states, offering a selection of goods that included diamonds, gold, precious and Whitehall acquired most of its inventory pursuant to consignment arrangements with its vendors. semi-precious jewelry and watches. Whitehall acquired most of its inventory pursuant to consignment arrangements (usually confirmed in written consignment agreements) with its vendors. The consignment agreements characterized the vendors arrangements with Whitehall as consignments; confirmed that each vendor owned and had full title to the consigned goods and Whitehall had no right, title or interest in the goods until their resale; and adopted UCC Article 9 as the governing law. The consignment vendors delivered their consigned goods to Whitehall for resale to Whitehall s customers. Whitehall did not segregate the consigned goods from Whitehall s non-consignment inventory, or otherwise identify the goods, as consigned goods, to its customers. On or about June 25, 2007, Whitehall changed its name from Whitehall Jewellers to Whitehall Jewelers. UCC Article 9 required Whitehall s consignment vendors to amend their UCC financing statements to reflect the name change within four months of the change as a condition for retaining their perfected interest in the consigned goods. Certain consignment creditors claimed that after its name change, Whitehall had continued to conduct business with them under its old name of Whitehall Jewellers, instead of its new name of Whitehall Jewelers. They were thereby induced to rely on their existing UCC financing statements instead of filing UCC amendments to reflect Whitehall s correct name. Whitehall s Chapter 11 Filing On June 23, 2008, Whitehall filed its Chapter 11 petition. Whitehall had approximately $63 million of consigned goods, received from approximately 124 vendors, in Whitehall s stores when it filed Chapter 11. The consigned goods comprised most of Whitehall s inventory and the consignment creditors were Whitehall s largest creditors.

3 Whitehall owed approximately $71.5 million to LaSalle Bank and other lenders. The lenders claims were secured by first priority liens and security interests in substantially all of Whitehall s assets, including Whitehall s inventory. Whitehall also owed approximately $40 million to another lender whose affiliates owned a majority of Whitehall s stock. The claim was secured by a second lien and security interest in Whitehall s assets, including inventory. Whitehall s Proposed Asset Sale The same day as its Chapter 11 filing, Whitehall moved for court approval of the sale of substantially all of its assets, including the consignment goods, free and clear of all liens, security and consignment interests and other encumbrances. The proposed purchasers were a group of liquidators that intended to conduct going-out-of-business sales at Whitehall s stores. The proposed purchase price was approximately 50% of the cost value of the goods. Expeditious and aggressive action by Whitehall s consignment vendors in objecting to the immediate sale of their goods resulted in the favorable treatment of their claims. Whitehall argued that the Bankruptcy Court had the power, under Bankruptcy Code Section 363(f), to approve the sale of the consigned goods free and clear of all consignment interests because Whitehall had challenged all of its consignment vendors interests in their goods. Section 363(f)(4) permits a debtor to sell assets free and clear of liens, security interests, encumbrances and other interests by proving such liens and other interests are subject to bona fide dispute. Whitehall disputed its vendors consignment interests and claimed they were unsecured creditors on several alternative grounds. Certain vendors had failed to file UCC financing statements to perfect their consignment interests. Other vendors had filed UCC financing statements that were defective, thereby rendering their consignment interests unperfected. Certain defective UCC financing statements incorrectly identified Whitehall Jewellers as the debtor, despite Whitehall s prior name change to Whitehall Jewelers. Other vendors had failed to satisfy UCC Article 9 s requirements for a purchase money security interest that would have otherwise granted them priority over Whitehall s secured lenders with a floating lien in all of Whitehall s inventory. Whitehall also argued that the consignment arrangements were sales or returns under UCC Section and were therefore subject to the claims of Whitehall s creditors. Certain vendors objected to the sale of their goods free of their consignment interests. They claimed that Whitehall could not satisfy Section 363(f), which is a prerequisite for court approval of the sale of their consigned goods free and clear of their interests, because they, not Whitehall, owned the goods. The Whitehall Court s Decision The Bankruptcy Court refused to approve the sale until it determined the ownership of the consigned goods. Bankruptcy Code Section 363(b) allows a debtor to sell only property of the debtor s estate. Property of the estate includes all legal or equitable interests of the debtor in property as of the commencement of the case. The court rejected Whitehall s argument that it owned the consigned goods by virtue of its possession of and obligation to insure the consigned goods, its identical treatment of consigned goods and other inventory and its ability to sell, and pass title to, the consigned goods without the permission of the consignment vendors. Whitehall s consignment agreements stated that its consignment vendors owned the consigned goods. In addition, Whitehall disclaimed ownership of the consigned goods in its filings with the Securities and Exchange Commission. The court also ruled that it could not determine whether the consigned goods were property of Whitehall s bankruptcy estate in the context of a contested matter, such as Whitehall s Section 363 sale motion. The court could only invalidate a lien or other interest, such as a consignment interest, following the commencement of an adversary proceeding, a full blown lawsuit, pursuant to Bankruptcy Rule 7001(2), and not by a motion. The court, therefore, required Whitehall to first commence adversary proceedings against each of its 124 consignment vendors prior to any determination of Whitehall s and its vendors interests in the consigned goods. Impact of the Whitehall Court s Refusal to Approve an Immediate Sale of the Consignment Goods The Whitehall court s refusal to approve Whitehall s immediate sale of the consigned goods allowed the consignment creditors to delay the sale process. The court also directed Whitehall to segregate all proceeds in an amount equal to the cost of such goods, of consigned goods sold post-petition, into a separate escrow account and prohibited any sale of consigned goods at prices below cost. Whitehall faced the prospect of a substantial delay of the sale process and limitations on the sale and disposition of the proceeds of its consigned goods while it litigated 124 separate lawsuits over the issue of whether the consigned goods were property of its bankruptcy estate. This ended up shifting the balance of power in the case in favor of the consignment vendors. The vendors exploited their advantage to negotiate a global settlement of their claims on favorable terms to them. As part of the settlement, Whitehall agreed to return the consigned goods to vendors participating in the settlement and pay these vendors from the escrow account for the post-petition sale of their consigned goods. A win-win for consignment vendors!

4 The moral of the Whitehall case is that expeditious and aggressive action by Whitehall s consignment vendors in objecting to the immediate sale of their goods resulted in the favorable treatment of their claims. The Holladay House Case The debtor, Holladay House, was a furniture retailer. In September, 2007, Holladay entered into a consignment and security agreement with D.M. Reid Associates under which D.M. Reid had consigned furniture to Holladay for sale to Holladay s customers as part of a 90-day sales promotional event. The consignment and security agreement memorialized Holladay s consignment arrangement with D.M. Reid and granted D.M. Reid a security interest in all of Holladay s consigned and non-consigned inventory to secure payment of all of Holladay s obligations to D.M. Reid. D.M. Reid timely filed a UCC financing statement with the State Corporation Commission for the Commonwealth of Virginia, the UCC filing office. Unfortunately, D.M. Reid did not adequately describe its collateral in its financing statement. D.M. Reid s collateral, as described in the consignment and security agreement, included all of Holladay s inventory, in addition to the consigned goods from D.M. Reid, and all products and proceeds. However, D.M. Reid s UCC financing statement contained the following narrower description of collateral: All inventory, furniture and furnishings of every kind, accessories, goods, merchandise, finished inventory, delivered to consignee at any time by consignor pursuant to a consignment agreement between the consignee and consignor, whether now existing or hereafter arising, wherever located and all proceeds thereof. On December 21, 2007, Holladay filed Chapter 11. D.M. Reid claimed that Holladay owed $172, to D.M. Reid when Holladay filed Chapter 11. On January 30, 2008, Holladay moved for court approval of the use of cash collateral. D.M. Reid objected to Holladay s cash collateral motion, asserting that Holladay could not adequately protect the security interest that D.M. Reid had asserted in all of Holladay s inventory. The Bankruptcy Court overruled D.M. Reid s objection to Holladay s cash collateral motion. The court held that D.M. Reid did not have a perfected security interest in all of Holladay s inventory, but instead had a perfected interest in only D.M. Reid s consigned goods, because of the narrower description of D.M. Reid s collateral (covering only consigned goods) in its UCC financing statement. D.M. Reid then appealed from the Bankruptcy Court s decision. The District Court s Decision The United States District Court for the Eastern District of Virginia also held that D.M. Reid had a perfected security interest in only the consigned goods that D.M. Reid had delivered to Holladay under the consignment and security agreement, and not in any other inventory of Holladay House as provided in the consignment and security agreement. A creditor obtains a security interest in a debtor s assets by the debtor s execution of a security agreement that describes the collateral. However, the creditor must then perfect its security interest in its collateral in order to prevail over all of the debtor s lien creditors, such as a bankruptcy trustee. Most security interests are perfected by filing a properly completed UCC financing statement with the appropriate UCC filing office. The financing statement must include the name of the debtor, the name of the secured party and a proper description of the secured creditor s collateral. This requirement is designed to give notice to third parties of the existence of the creditor s security interest in the debtor s assets. If the description of the collateral in the financing statement is narrower than the description in the security agreement, or the UCC s collateral description contains significant disparities or omissions when compared to the description in the security agreement, the creditor s perfected security interest is limited to the narrower or incomplete collateral description contained in the financing statement. The Holladay decision further points out the need for secured creditors to properly document their security arrangements, including properly describing their collateral in their UCC financing statements. The description of collateral (consigned goods) that D.M. Reid had included in its UCC financing statement was narrower than the description of its collateral, all of Holladay s consigned and non-consigned inventory, contained in the consignment and security agreement. As a result, the financing statement did not put third parties on notice of the need to inquire about D.M. Reid s security interest in Holladay s non-consigned inventory. That limited D.M. Reid s perfected security interest to only its consigned goods. The court also noted that D.M. Reid s filing of the consignment and security agreement with the UCC filing office was not sufficient to perfect D.M. Reid s security interest in all of Holladay s inventory. D.M. Reid s UCC financing statement did not refer to the consignment and security agreement and incorporate its terms, including its reference to Holladay s consigned and non-consigned inventory as collateral security for payment of Holladay s obligations to D.M. Reid. Once again, as a result of this omission, a reasonable searcher could rely only on the more limited collateral description, consigned goods, contained in D.M. Reid s financing statement.

5 Bottom line, D.M. Reid was done in by an incomplete collateral description in its financing statement. Conclusion The Whitehall decision illustrates the benefits to consignment vendors that aggressively protect their consignment interests (in that case, by opposing Whitehall s sale of their consigned goods). The court s refusal to approve the sale, without first determining ownership of the consigned goods, posed a sufficient enough risk to the sales process to induce Whitehall to settle with its consignment vendors on favorable terms to the vendors. The Holladay decision further points out the need for secured creditors to properly document their security arrangements, including properly describing their collateral in their UCC financing statements. D.M. Reid s failure to include in its UCC financing statement the broader description of its collateral (all of Holladay s inventory) that was contained in the consignment and security agreement limited D.M. Reid s perfected security interest to only D.M. Reid s consigned goods as described in its financing statement. Bottom line folks: aggressive creditor action, coupled with proper drafting, maximizes trade creditor recovery! Bruce Nathan, Esq. is a partner in the New York City office of the law firm of Lowenstein Sandler PC. He is a member of NACM and is on the Board of Directors of the American Bankruptcy Institute and is a former co-chair of ABI s Unsecured Trade Creditors Committee. He can be reached via at bnathan@lowenstein.com. This is reprinted from Business Credit magazine, a publication of the National Association of Credit Management. This article may not be forwarded electronically or reproduced in any way without written permission from the Editor of Business Credit Magazine.

Demystifying Chapter 15 of the Bankruptcy Code

Demystifying Chapter 15 of the Bankruptcy Code NATIONAL ASSOCIATION OF CREDIT MANAGEMENT JUNE 2009 THE PUBLICATION FOR CREDIT & FINANCE PROFESSIONALS $7.00 credit column Bruce Nathan, Esq. and Eric Horn, Esq. Demystifying Chapter 15 of the Bankruptcy

More information

Accounts Receivable and Inventory Financing

Accounts Receivable and Inventory Financing Accounts Receivable and Inventory Financing Glossary Accounts Payable - A current liability representing the amount owed by an individual or a business to a creditor for merchandise or services purchased

More information

Third Circuit Approves Use of Escrow Agreements Funded by Acquirers to Pay Junior Creditors Before Senior Creditors

Third Circuit Approves Use of Escrow Agreements Funded by Acquirers to Pay Junior Creditors Before Senior Creditors Alert Third Circuit Approves Use of Escrow Agreements Funded by Acquirers to Pay Junior Creditors Before Senior Creditors September 21, 2015 An asset purchaser s payments into segregated accounts for the

More information

NONBANKRUPTCY ALTERNATIVES. ASSIGNMENTS FOR BENEFIT OF CREDITORS; UCC SALES, AND VOLUNTARY LIQUIDATIONS, by Caroline C. Fuller

NONBANKRUPTCY ALTERNATIVES. ASSIGNMENTS FOR BENEFIT OF CREDITORS; UCC SALES, AND VOLUNTARY LIQUIDATIONS, by Caroline C. Fuller NONBANKRUPTCY ALTERNATIVES ASSIGNMENTS FOR BENEFIT OF CREDITORS; UCC SALES, AND VOLUNTARY LIQUIDATIONS, by Caroline C. Fuller I. Assignment for Benefit of Creditors Colorado and Utah statutes provide for

More information

11 U.S.C. 544 ORS 79.0109(1)(a) ORS 71.2010(37)(a) ORS 79.0102(pp) ORS 79.0102(iii) ORS 79.0109(4)(g) ORS 79.0309(2) ORS 79.0102(b) ORS 79.

11 U.S.C. 544 ORS 79.0109(1)(a) ORS 71.2010(37)(a) ORS 79.0102(pp) ORS 79.0102(iii) ORS 79.0109(4)(g) ORS 79.0309(2) ORS 79.0102(b) ORS 79. 11 U.S.C. 544 ORS 79.0109(1)(a) ORS 71.2010(37)(a) ORS 79.0102(pp) ORS 79.0102(iii) ORS 79.0109(4)(g) ORS 79.0309(2) ORS 79.0102(b) ORS 79.0310(3) Cohen v. Houston et al, Adversary No. 02-3586 In re Cohen,

More information

United States Bankruptcy Court District of

United States Bankruptcy Court District of B25B (Official Form 25B) (12/08) United States Bankruptcy Court District of In re, Case No. Debtor Small Business Case under Chapter 11 [NAME OF PLAN PROPONENT] S DISCLOSURE STATEMENT, DATED [INSERT DATE]

More information

Advanced Bankruptcy for Bankers. Candace C. Carlyon, Esq. www.sheacarlyon.com

Advanced Bankruptcy for Bankers. Candace C. Carlyon, Esq. www.sheacarlyon.com Advanced Bankruptcy for Bankers Candace C. Carlyon, Esq. www.sheacarlyon.com 1 Pre Bankruptcy Review loan files, confirm collateral security, obtain as much information as possible Consider timing of remedies

More information

Bankruptcy Basics June 9, 2009

Bankruptcy Basics June 9, 2009 Bankruptcy Basics June 9, 2009 Brooks Hamilton Haynes and Boone, LLP www.haynesboone.com Purposes of bankruptcy Mechanism to allow person or company that cannot pay creditors to resolve debts through division

More information

U.S. Bankruptcy Basics

U.S. Bankruptcy Basics SHEPPARD MULLIN SHEPPARD MULLIN RICHTER & HAMPTON LLP A T T O R N E Y S A T L A W U.S. Bankruptcy Basics Sheppard, Mullin, Richter & Hampton LLP Edward H. Tillinghast, III etillinghast@sheppardmullin.com

More information

Camouflaged Collateral: "All Asset" Liens May Not Include Proceeds of D&O Insurance Policies in Bankruptcy

Camouflaged Collateral: All Asset Liens May Not Include Proceeds of D&O Insurance Policies in Bankruptcy Camouflaged Collateral: "All Asset" Liens May Not Include Proceeds of D&O Insurance Policies in Bankruptcy Article contributed by Lawrence V. Gelber and James T. Bentley of Schulte Roth & Zabel LLP As

More information

BUYING AND SELLING ASSETS FROM AN ENTITY IN CHAPTER 11

BUYING AND SELLING ASSETS FROM AN ENTITY IN CHAPTER 11 BUYING AND SELLING ASSETS FROM AN ENTITY IN CHAPTER 11 Francis P. Dicello, Esq. I. Sources of Financial Information for Troubled Companies A. Nonbankruptcy Sources 1. Lien Judgment Search 2. Reports to

More information

Personal Property Title Insurance Owner s Policy (PPT-1)

Personal Property Title Insurance Owner s Policy (PPT-1) Personal Property Title Insurance (PPT-1) Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address

More information

IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA

IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA Main Document Page 1 of 5 IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE CHAPTER ELEVEN MUIR HOUSE, INC. a/k/a THE MUIR BANKRUPTCY NO. 5-06-bk-50409 HOUSE a/k/a MUIR

More information

Protecting Yourself as a Secured Creditor New Developments: 2010 Proposed Amendments to Article 9

Protecting Yourself as a Secured Creditor New Developments: 2010 Proposed Amendments to Article 9 Protecting Yourself as a Secured Creditor New Developments: 2010 Proposed Amendments to Article 9 By Cynthia G. Fischer The Uniform Commercial Code ( UCC ) was drafted by two independent commissions (the

More information

BANKRUPTCY TERMINOLOGY

BANKRUPTCY TERMINOLOGY ADVERSARY PROCEEDING BANKRUPTCY TERMINOLOGY A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the bankruptcy court. ASSUME An agreement to continue performing

More information

Bankruptcy and Artwork Consignment in New Jersey. David S. Gold, David M. Kohane, and Ryan T. Jareck. Cole, Schotz, Meisel, Forman & Leonard PA

Bankruptcy and Artwork Consignment in New Jersey. David S. Gold, David M. Kohane, and Ryan T. Jareck. Cole, Schotz, Meisel, Forman & Leonard PA Bankruptcy and Artwork Consignment in New Jersey David S. Gold, David M. Kohane, and Ryan T. Jareck Cole, Schotz, Meisel, Forman & Leonard PA Copyright 2011 Reprinted and distributed by New Jersey Volunteer

More information

Chapter 7 Commercial Bankruptcy Strategies

Chapter 7 Commercial Bankruptcy Strategies I N S I D E T H E M I N D S Chapter 7 Commercial Bankruptcy Strategies Leading Lawyers on Navigating the Chapter 7 Filing Process, Understanding Bankruptcy Trends, and Advising Clients 2010 EDITION 2010

More information

(sometimes "the Code" or "Revised Article 9"). The focus of this outline is the creation and

(sometimes the Code or Revised Article 9). The focus of this outline is the creation and BASICS OF CREATION AND PERFECTION OF SECURITY INTERESTS UNDER ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE Presented by Robert K. Weiler to the Onondaga County Bar Association (September 2006) I. Introduction.

More information

Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes ) Notice of Interim Distribution

Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes ) Notice of Interim Distribution Corporate Trust Services 214 North Tryon Street, 27 th Floor Charlotte, NC 28202 Notice to Holders of: Evergreen Solar, Inc. 13% Convertible Senior Secured Notes Due 2015 *Cusip: 30033RAE8 (the Notes )

More information

SECURED TRANSACTIONS: PRACTICAL THINGS EVERY BUSINESS LAWYER SHOULD KNOW ABOUT UCC ARTICLE 9. By Joseph H. Flack

SECURED TRANSACTIONS: PRACTICAL THINGS EVERY BUSINESS LAWYER SHOULD KNOW ABOUT UCC ARTICLE 9. By Joseph H. Flack SECURED TRANSACTIONS: PRACTICAL THINGS EVERY BUSINESS LAWYER SHOULD KNOW ABOUT UCC ARTICLE 9 By Joseph H. Flack At the outset, Normal M. Powell 1 captured the complexity of the law secured transactions.

More information

INVOLUNTARY BANKRUPTCIES

INVOLUNTARY BANKRUPTCIES INVOLUNTARY BANKRUPTCIES Joseph S.U. Bodoff Bodoff & Associates, P.C. How It Works The statutory provisions dealing with involuntary bankruptcies are contained in section 303 of the Bankruptcy Code. There

More information

Federal Tax ID # Employer ID# Credit Amount Requested: $ NOTE: Signed original application must be on file to activate your account.

Federal Tax ID # Employer ID# Credit Amount Requested: $ NOTE: Signed original application must be on file to activate your account. Application for Credit Unless the applicant is a public corporation, please attach the applicant s most recent financial statements to expedite credit approval. Please complete this form, read and initial

More information

Recent Noteworthy Securitization Case In re Doctors Hospital of Hyde Park, Inc. 2013 WL 5524696 (Bankr. N.D. Ill. 2013)

Recent Noteworthy Securitization Case In re Doctors Hospital of Hyde Park, Inc. 2013 WL 5524696 (Bankr. N.D. Ill. 2013) Client Alert Current Issues Relevant to Our Clients Recent Noteworthy Securitization Case In re Doctors Hospital of Hyde Park, Inc. 2013 WL 5524696 (Bankr. N.D. Ill. 2013) October 23, 2013 Introduction

More information

Case 10-32200 Document 33 Filed in TXSB on 04/21/10 Page 1 of 8 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS

Case 10-32200 Document 33 Filed in TXSB on 04/21/10 Page 1 of 8 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS Case 10-32200 Document 33 Filed in TXSB on 04/21/10 Page 1 of 8 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION ENTERED 04/21/2010 ) IN RE ) ) SOUTHWEST GUARANTY,

More information

LENDER THE SECURED. by Gary Samson

LENDER THE SECURED. by Gary Samson THE SECURED LENDER Magazine of the Asset-Based Financial Services by Gary Samson t is common in commercial lending transactions for the lender to require the borrower to make various representations and

More information

REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005

REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005 REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS The Risk by H. Lee Schwartzberg, Jr., Esq. 2005 The commercial realities of the marketplace frequently require manufacturers to offer payment terms to

More information

Are State Preference Laws Preempted by the United States Bankruptcy Code? Not Necessarily! By: Bruce S. Nathan & Scott Cargill

Are State Preference Laws Preempted by the United States Bankruptcy Code? Not Necessarily! By: Bruce S. Nathan & Scott Cargill Reprinted from: "The Credit and Financial Management Review, A Journal for Credit and Financial Administrators"; Volume 13, Number 4 Fourth Quarter 2007. All Rights Reserved. Are State Preference Laws

More information

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT. No. 10-3272. In re: JOHN W. HOWARD, Debtor. ROBERT O. LAMPL, Appellant

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT. No. 10-3272. In re: JOHN W. HOWARD, Debtor. ROBERT O. LAMPL, Appellant UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT No. 10-3272 In re: JOHN W. HOWARD, Debtor NOT PRECEDENTIAL ROBERT O. LAMPL, Appellant VANASKIE, Circuit Judge. On Appeal from the United States District

More information

Case 14-24874-KCF Doc 12 Filed 07/21/14 Entered 07/21/14 18:47:10 Desc Main Document Page 1 of 9

Case 14-24874-KCF Doc 12 Filed 07/21/14 Entered 07/21/14 18:47:10 Desc Main Document Page 1 of 9 Case 14-24874-KCF Doc 12 Filed 07/21/14 Entered 07/21/14 18:47:10 Desc Main Document Page 1 of 9 LOWENSTEIN SANDLER LLP Kenneth A. Rosen, Esq. Jeffrey D. Prol, Esq. Ira M. Levee, Esq. 65 Livingston Avenue

More information

Case 14-50028 Doc 30 Filed 03/16/15 EOD 03/16/15 15:59:28 Pg 1 of 8 SO ORDERED: March 16, 2015. Jeffrey J. Graham United States Bankruptcy Judge

Case 14-50028 Doc 30 Filed 03/16/15 EOD 03/16/15 15:59:28 Pg 1 of 8 SO ORDERED: March 16, 2015. Jeffrey J. Graham United States Bankruptcy Judge Case 14-50028 Doc 30 Filed 03/16/15 EOD 03/16/15 15:59:28 Pg 1 of 8 SO ORDERED: March 16, 2015. Jeffrey J. Graham United States Bankruptcy Judge UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA

More information

LAW ON PLEDGE OF MOVABLE ASSETS REGISTERED IN THE PLEDGE REGISTRY I. GENERAL PROVISIONS

LAW ON PLEDGE OF MOVABLE ASSETS REGISTERED IN THE PLEDGE REGISTRY I. GENERAL PROVISIONS LAW ON PLEDGE OF MOVABLE ASSETS REGISTERED IN THE PLEDGE REGISTRY (Published in the Official Gazette of the Republic of Serbia No. 57/03, 61/05, 64/06) I. GENERAL PROVISIONS Subject Matter of the Law Art.

More information

JEFFREY BADDELEY AND ERIC R. GOODMAN

JEFFREY BADDELEY AND ERIC R. GOODMAN Bankruptcy Court Holds that Postpetition Loan Participation Is Not a Form of Cover Under the Uniform Commercial Code (And Losses Related Thereto Cannot Be Set Off or Recouped Against Prepetition Receivables)

More information

BANK FINANCE AND REGULATION Multi-Jurisdictional Survey SECURITY OVER COLLATERAL. USA - LOUISIANA Lemle & Kelleher, L.L.P.

BANK FINANCE AND REGULATION Multi-Jurisdictional Survey SECURITY OVER COLLATERAL. USA - LOUISIANA Lemle & Kelleher, L.L.P. BANK FINANCE AND REGULATION Multi-Jurisdictional Survey SECURITY OVER COLLATERAL USA - LOUISIANA Lemle & Kelleher, L.L.P. CONTACT INFORMATION Patrick Johnson Lemle & Kelleher, L.L.P. 21st Floor, Pan American

More information

Each of these title insurance products afford separate and distinct protections to a Mezzanine Lender.

Each of these title insurance products afford separate and distinct protections to a Mezzanine Lender. Title Insurance For Mezzanine Loan Financing in New York By Michael J. Berey Senior Underwriting Counsel and Senior Vice-President First American Title Insurance Company of New York Published in the "Real

More information

Case 13-13954-AJC Doc 11 Filed 02/26/13 Page 1 of 9. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA Miami Division

Case 13-13954-AJC Doc 11 Filed 02/26/13 Page 1 of 9. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA Miami Division Case 13-13954-AJC Doc 11 Filed 02/26/13 Page 1 of 9 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA Miami Division In re: BANAH INTERNATIONAL GROUP, INC. Case No. 13-13954-AJC Chapter 11 Debtor.

More information

IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION In re: ) Case No. 12-43590-705 ) ROBERTS HOTELS HOUSTON, LLC, ) et al ) Jointly Administered ) Under Chapter 11 Debtors.

More information

PLACING YOUR GOODS ON CONSIGNMENT WITH YOUR AMERICAN BUSINESS PARTNER: WHAT THE FOREIGN EXPORTER AND ITS FINANCING BANK OR FACTOR SHOULD KNOW

PLACING YOUR GOODS ON CONSIGNMENT WITH YOUR AMERICAN BUSINESS PARTNER: WHAT THE FOREIGN EXPORTER AND ITS FINANCING BANK OR FACTOR SHOULD KNOW PLACING YOUR GOODS ON CONSIGNMENT WITH YOUR AMERICAN BUSINESS PARTNER: WHAT THE FOREIGN EXPORTER AND ITS FINANCING BANK OR FACTOR SHOULD KNOW By AARON N. WISE AARON N. WISE, ESQ., PARTNER Aaron N. Wise

More information

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF LOUISIANA CHAPTER 13 PLAN [MOTION FOR FRBP RULE 3012 VALUATION HEARING]

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF LOUISIANA CHAPTER 13 PLAN [MOTION FOR FRBP RULE 3012 VALUATION HEARING] UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF LOUISIANA CHAPTER 13 PLAN [MOTION FOR FRBP RULE 3012 VALUATION HEARING] Original plan Amended plan -- Date amended: The debtor's future earnings are submitted

More information

By John J. Lamoureux Carlton Fields, P.A. Tampa, Florida. On April 20, 2005 President Bush signed into law the Bankruptcy Abuse Prevention and

By John J. Lamoureux Carlton Fields, P.A. Tampa, Florida. On April 20, 2005 President Bush signed into law the Bankruptcy Abuse Prevention and RECENT CHANGES TO THE UNITED STATES BANKRUPTCY CODE WHAT CONSTRUCTION LAWYERS SHOULD KNOW AND THE POTENTIAL IMPACT SUCH CHANGES MAY HAVE ON CONSTRUCTION PROJECTS By John J. Lamoureux Carlton Fields, P.A.

More information

My Customer Filed Bankruptcy What Should I Do Now?

My Customer Filed Bankruptcy What Should I Do Now? My Customer Filed Bankruptcy What Should I Do Now? Lynnette Warman Lwarman@Hunton.com Copyright October 2009 First, confirm there has been a filing. Not all cases get filed. Or if they are filed, they

More information

A Step-by-Step Look at Chapter 11. Richard L. Wasserman Partner Venable LLP

A Step-by-Step Look at Chapter 11. Richard L. Wasserman Partner Venable LLP A Step-by-Step Look at Chapter 11 Richard L. Wasserman Partner Venable LLP Introduction Chapter 11 bankruptcy practice is a very diverse practice. One day you are a business lawyer addressing the business

More information

Intellectual Property Rights and Strategies in Bankruptcy

Intellectual Property Rights and Strategies in Bankruptcy Intellectual Property Rights and Strategies in April 2009 2009 Morrison & Foerster LLP All Rights Reserved I. Market Overview II. The Rise and Importance of Intellectual Property Rights III. Strategies

More information

Case 13-13087-KG Doc 483 Filed 01/17/14 Page 1 of 11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

Case 13-13087-KG Doc 483 Filed 01/17/14 Page 1 of 11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE Case 13-13087-KG Doc 483 Filed 01/17/14 Page 1 of 11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re ) Chapter 11 ) FISKER AUTOMOTIVE HOLDINGS, INC., et al., ) ) Case No. 13-13087(KG)

More information

Case 15-21416 Doc 253 Filed 11/03/15 Entered 11/03/15 16:22:54 Desc Main Document Page 1 of 13

Case 15-21416 Doc 253 Filed 11/03/15 Entered 11/03/15 16:22:54 Desc Main Document Page 1 of 13 Document Page 1 of 13 UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT HARTFORD DIVISION IN RE: : CHAPTER 11 : THORNTON & CO., INC. : CASE NO 15-21416 (AMN) : Debtor : RE: ECF No. 248 : ORDER GRANTING

More information

Losing The Bid: Philadelphia Newspapers Sale Dispute

Losing The Bid: Philadelphia Newspapers Sale Dispute Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Losing The Bid: Philadelphia Newspapers Sale Dispute

More information

DISTRICT OF COLUMBIA OFFICIAL CODE

DISTRICT OF COLUMBIA OFFICIAL CODE DISTRICT OF COLUMBIA OFFICIAL CODE TITLE 31. INSURANCE AND SECURITIES. CHAPTER 50B. TITLE INSURANCE PRODUCERS. 2001 Edition DISTRICT OF COLUMBIA OFFICIAL CODE CHAPTER 50B. TITLE INSURANCE PRODUCERS. TABLE

More information

ALERT APRIL 25, 2005

ALERT APRIL 25, 2005 919 Third Avenue, New York, NY 10022 n Tel: (212) 756-2000 n Fax: (212) 593-5955 n www.srz.com n e-mail: wwwmail@srz.com ALERT APRIL 25, 2005 2005 BANKRUPTCY CODE AMENDMENTS: QUICK SUMMARY OF BUSINESS

More information

BANKRUPTCY LAW MANUAL

BANKRUPTCY LAW MANUAL BANKRUPTCY LAW MANUAL FIFTH EDITION THE HONORABLE NANCY C. DREHER CHIEF UNITED STATES BANKRUPTCY JUDGE, DISTRICT OF MINNESOTA MEMBER, UNITED STATES EIGHTH CIRCUIT BANKRUPTCY APPELLATE PANEL (1997-2005)

More information

LAW OFFICES ULLMAN & ULLMAN PROFESSIONAL ASSOCIATION

LAW OFFICES ULLMAN & ULLMAN PROFESSIONAL ASSOCIATION International Secured Transactions Involving Accounts : A Case Study for a Priority Dispute with a Judgment Creditor of a Debtor located in the United States and The Legal Scheme June 4, 2012 Factoring

More information

2:00 pm 5:00 pm. Session Number: 25056. 45224422 v2

2:00 pm 5:00 pm. Session Number: 25056. 45224422 v2 A View From The Bench And Bar: A Discussion Of Current Hot Bankruptcy Issues Facing Trade Creditors And The Future Of Chapter 11 Following BAPCPA S 10 TH Anniversary Speakers: Honorable Laurel Davis, UNITED

More information

Cohen, Salk & Huvard, P.C. Attorneys At Law

Cohen, Salk & Huvard, P.C. Attorneys At Law Cohen, Salk & Huvard, P.C. Attorneys At Law Bennett L. Cohen 630 Dundee Road, Suite I20 Bruce Alan Salk Northbrook, Illinois 60062 Bruce K. Huvard Barry I. Mortge Tel 847.480.7800 Christyl L. Marsh Fax

More information

The Lien Handbook: An A to Z Guide on All Things Property Liens

The Lien Handbook: An A to Z Guide on All Things Property Liens The Lien Handbook: An A to Z Guide on All Things Property Liens Introduction Anyone who buys, sells or owns real property will likely deal with property liens at some point and in some fashion. Some property

More information

Bankruptcy s Impact On Your and Other Creditors Business: How to Make the Bad News Better

Bankruptcy s Impact On Your and Other Creditors Business: How to Make the Bad News Better Bankruptcy s Impact On Your and Other Creditors Business: How to Make the Bad News Better Husch Blackwell LLP Ben Mann John Cruciani An Overview of Business Bankruptcy & Creditors Rights Issues June 26,

More information

TOP THINGS TO REMEMBER ABOUT THE TRUSTEE S OFFICE AND YOUR CHAPTER 13 CASE

TOP THINGS TO REMEMBER ABOUT THE TRUSTEE S OFFICE AND YOUR CHAPTER 13 CASE TOP THINGS TO REMEMBER ABOUT THE TRUSTEE S OFFICE AND YOUR CHAPTER 13 CASE 1. Know your case number. 2. Make your payments. Send your payments in time for the payments to reach the Trustee s office by

More information

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND At Greenbelt

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND At Greenbelt IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND At Greenbelt In Re: : : BADTEC, INC. : Case No. 11-33795-TJC : (Chapter 7) : Debtor : TRUSTEE S MOTION TO APPROVE THE SALE OF IMPROVED

More information

BANKRUPTCY ISSUES RELATED TO MORTGAGE FORECLOSURES

BANKRUPTCY ISSUES RELATED TO MORTGAGE FORECLOSURES TABAS FREEDMAN Attorneys One Flagler Building 14 Northeast First Avenue, Penthouse Miami, Florida 33132 Telephone 305.375.8171 Facsimile 305.381.7708 www.tabasfreedman.com Gary M. Freedman gfreedman@tabasfreedman.com

More information

FARM LEGAL SERIES June 2015 Security Interests in Personal Property

FARM LEGAL SERIES June 2015 Security Interests in Personal Property Agricultural Business Management FARM LEGAL SERIES June 2015 Security Interests in Personal Property Phillip L. Kunkel, Jeffrey A. Peterson, Jason Thibodeaux Attorneys, Gray Plant Mooty INTRODUCTION The

More information

Frequently Asked Questions. for. Chapter 7 Debtors

Frequently Asked Questions. for. Chapter 7 Debtors Frequently Asked Questions for Chapter 7 Debtors The information contained in this document is provided as a service to our clients, and does not constitute legal advice. We try to provide quality information,

More information

LIQUIDATION ANALYSIS

LIQUIDATION ANALYSIS APPENDIX C THIS LIQUIDATION ANALYSIS PRESENTS INFORMATION FOR ALL REORGANIZED DEBTORS ON A CONSOLIDATED BASIS. PRIOR TO THE HEARING TO APPROVE THE DISCLOSURE STATEMENT, THE DEBTORS WILL REPLACE THIS LIQUIDATION

More information

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION. Case No. 8:90-bk-10016-PMG. Debtor. Chapter 11

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION. Case No. 8:90-bk-10016-PMG. Debtor. Chapter 11 UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION In re: Case No. 8:90-bk-10016-PMG THE CELOTEX CORPORATION, Debtor. Chapter 11 ORDER ON PROPERTY DAMAGE ADVISORY COMMITTEE S MOTION

More information

The New Bankruptcy Law Amendments and their Impact on Business Bankruptcy Cases

The New Bankruptcy Law Amendments and their Impact on Business Bankruptcy Cases May 2005 The New Bankruptcy Law Amendments and their Impact on Business Bankruptcy Cases On April 14, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of

More information

INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 10, PROOF OF CLAIM I. INTRODUCTION

INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 10, PROOF OF CLAIM I. INTRODUCTION INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 10, PROOF OF CLAIM I. INTRODUCTION The principal response of a creditor to the filing of a bankruptcy case is to file a proof of claim (Official Form 10). Specifically,

More information

Uncharted Waters: Navigating Governmental Entities Creditor s Rights in Bankruptcy Cases By Edmund S. Whitson, III 1 and Nicole C.

Uncharted Waters: Navigating Governmental Entities Creditor s Rights in Bankruptcy Cases By Edmund S. Whitson, III 1 and Nicole C. Uncharted Waters: Navigating Governmental Entities Creditor s Rights in Bankruptcy Cases By Edmund S. Whitson, III 1 and Nicole C. Nate 2 1 Mr. Whitson is a shareholder at Anthony & Partners. He has more

More information

American Bankruptcy Board of Certification Sample Exam General Bankruptcy Multiple Choice Total Time Two Hours

American Bankruptcy Board of Certification Sample Exam General Bankruptcy Multiple Choice Total Time Two Hours American Bankruptcy Board of Certification Sample Exam General Bankruptcy Multiple Choice Total Time Two Hours NOTE: The Bankruptcy Multiple-Choice exam contains 50 questions. You must correctly answer

More information

Payment System Override Deems Transaction Not Ordinary

Payment System Override Deems Transaction Not Ordinary Payment System Override Deems Transaction Not Ordinary Ames Merchandising Corp. v. Cellmark Paper Inc. (In re Ames Dept. Stores, Inc.), 2011 Bankr. LEXIS 969 (Bankr. S.D.N.Y. Mar. 28, 2011) In Ames Merchandising

More information

In re CHRIS-DON, INC. 308 B.R. 214 (Bankr. D.N.J. 2004)

In re CHRIS-DON, INC. 308 B.R. 214 (Bankr. D.N.J. 2004) In re CHRIS-DON, INC. 308 B.R. 214 (Bankr. D.N.J. 2004) RAYMOND T. LYONS, Bankruptcy Judge. Presented for the court s determination are cross motions for summary judgment regarding the extent, validity

More information

WHAT EVERY ATTORNEY NEEDS TO KNOW ABOUT BANKRUPTCY

WHAT EVERY ATTORNEY NEEDS TO KNOW ABOUT BANKRUPTCY WHAT EVERY ATTORNEY NEEDS TO KNOW ABOUT BANKRUPTCY 6 Nevada Lawyer March 2014 Where to Look BY CANDACE C. CARLYON, ESQ. AND ADAM BOWLER, ESQ. A great starting point in a search for bankruptcy information

More information

LIENS. Lien: An encumbrance on property to secure a debt or to protect a claim for payment of a debt.

LIENS. Lien: An encumbrance on property to secure a debt or to protect a claim for payment of a debt. LIENS Lien: An encumbrance on property to secure a debt or to protect a claim for payment of a debt. Mechanic s Lien: A lien on real property to ensure payment for work performed and materials furnished

More information

AkerAlert. The American Home Mortgage Case and Repurchase Agreements. Finance Law ADVERTISEMENT. march 20, 2008

AkerAlert. The American Home Mortgage Case and Repurchase Agreements. Finance Law ADVERTISEMENT. march 20, 2008 AkerAlert Finance Law march 20, 2008 The American Home Mortgage Case and Repurchase Agreements By Jules Cohen, Esq. and Milton Vescovacci, Esq. In the field of mortgage warehouse lending, repurchase agreements

More information

Overview of U.S. Bankruptcy Law and Procedure: Dealing with Customers in These Troubled Economic Times

Overview of U.S. Bankruptcy Law and Procedure: Dealing with Customers in These Troubled Economic Times Overview of U.S. Bankruptcy Law and Procedure: Dealing with Customers in These Troubled Economic Times By: Richard R. Lury, Partner Benjamin D. Feder, Special Counsel Kelley Drye & Warren LLP During the

More information

Return completed applications to: APAC-Texas, Inc. P.O. Box 20779 Beaumont, TX 77720 (409) 866-1444 Phone (409) 866-5541 Fax

Return completed applications to: APAC-Texas, Inc. P.O. Box 20779 Beaumont, TX 77720 (409) 866-1444 Phone (409) 866-5541 Fax Return completed applications to: APAC-Texas, Inc. P.O. Box 20779 Beaumont, TX 77720 (409) 866-1444 Phone (409) 866-5541 Fax APPLICATION FOR BUSINESS CREDIT Date: NOTE: This application for Business Credit

More information

PURCHASE MONEY SECURITY INTERESTS FOR REPETITIVE SALES PURCHASE MONEY SECURITY INTERESTS

PURCHASE MONEY SECURITY INTERESTS FOR REPETITIVE SALES PURCHASE MONEY SECURITY INTERESTS PURCHASE MONEY SECURITY INTERESTS FOR REPETITIVE SALES INTRODUCTION During lean and difficult economic times, suppliers of goods often see credit risks increase as buyers sales take a hit and the bills

More information

BIDDING PROCEDURES 1

BIDDING PROCEDURES 1 BIDDING PROCEDURES 1 By motion (the "Motion"), dated April 10, 2015, RadioShack and its affiliated debtors, each as a debtor and debtor-in-possession (collectively, the "Debtors"), sought, among other

More information

NOT FOR PUBLICATION UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN. SPECIALTY SERVICES, INC., Case No.

NOT FOR PUBLICATION UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN. SPECIALTY SERVICES, INC., Case No. NOT FOR PUBLICATION UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN In re: SPECIALTY SERVICES, INC., Case No. GG 02-07090 Debtor. Chapter 7 / JAMES W. HOERNER, TRUSTEE, Plaintiff, -vs-

More information

BANKRUPTCY. Westlaw Journal. Part 2: How to Maximize Recovery by Properly Asserting Claims for Goods Sold to a Debtor in the 20 Days Before Bankruptcy

BANKRUPTCY. Westlaw Journal. Part 2: How to Maximize Recovery by Properly Asserting Claims for Goods Sold to a Debtor in the 20 Days Before Bankruptcy Westlaw Journal BANKRUPTCY Litigation News and Analysis Legislation Regulation Expert Commentary VOLUME 7, ISSUE 18 / JANUARY 7, 2011 Expert Analysis Show Me the Money! Bankruptcy Claims Under Section

More information

BUSINESS CREDIT AND CONTINUING SECURITY AGREEMENT

BUSINESS CREDIT AND CONTINUING SECURITY AGREEMENT BUSINESS CREDIT AND CONTINUING SECURITY AGREEMENT This Business Credit and Continuing Security Agreement ("Agreement") includes this Agreement and may include a Business Credit Agreement Rider and Business

More information

Case 10-93904-BHL-11 Doc 416 Filed 03/31/11 EOD 03/31/11 15:52:22 Pg 1 of 12 SO ORDERED: March 31, 2011.

Case 10-93904-BHL-11 Doc 416 Filed 03/31/11 EOD 03/31/11 15:52:22 Pg 1 of 12 SO ORDERED: March 31, 2011. Case 10-93904-BHL-11 Doc 416 Filed 03/31/11 EOD 03/31/11 15:52:22 Pg 1 of 12 SO ORDERED: March 31, 2011. Basil H. Lorch III United States Bankruptcy Judge IN THE UNITED STATES BANKRUPTCY COURT SOUTHERN

More information

PAYMENT IN FULL? contractors over how much money is due for a particular contract. A roofing contractor may

PAYMENT IN FULL? contractors over how much money is due for a particular contract. A roofing contractor may PAYMENT IN FULL? What should roofing contractors do if they receive a check for less than the full amount, but the check contains language indicating it is final payment? INTRODUCTION Roofing contractors

More information

Dealer Registration Package

Dealer Registration Package Dealer Registration Package REQUESTED by: 6 pages ATTENTION: Angela Boots (Dealer Registration) FAX NUMBER: (954)739-3359 EMAIL: dealreg@sflaa.com *****THIS PAGE DOES NOT NEED TO BE FILLED OUT IT IS ONLY

More information

ABI Commission Report Recommendations on DIP Financing Would Eliminate Lender Protection

ABI Commission Report Recommendations on DIP Financing Would Eliminate Lender Protection Alert ABI Commission Report Recommendations on DIP Financing Would Eliminate Lender Protection December 30, 2014 The American Bankruptcy Institute Commission to Study the Reform of Chapter 11 (the Commission

More information

THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS

THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS THE DRAFT INSOLVENCY AND BANKRUPTCY BILL, 2015 KEY ISSUES AND SUGGESTIONS The Insolvency and Bankruptcy Bill, 2015 Key Issues and suggestions For ease of reference, the comments / suggestions have been

More information

CCIM Presentation: How Bankruptcies Affect Distressed Assets By: Tom Hillier and Ivy Grey Davis Wright Tremaine LLP

CCIM Presentation: How Bankruptcies Affect Distressed Assets By: Tom Hillier and Ivy Grey Davis Wright Tremaine LLP CCIM Presentation: How Bankruptcies Affect Distressed Assets By: Tom Hillier and Ivy Grey Davis Wright Tremaine LLP BANKRUPTCY 101 BASICS & CONTEXT 1. Guiding Policies a. Equality of Distribution b. Adequate

More information

Notice of Formation Meeting for Official Committee of Unsecured Creditors

Notice of Formation Meeting for Official Committee of Unsecured Creditors Office of the United States Trustee District of Delaware 844 King Street, Suite 2207 Wilmington, DE 19801 Tel. No. (302) 573-6491 Fax No. (302) 573-6497 IN RE: Chapter 11 Boomerang Tube, LLC, et al. Debtors.

More information

Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital

Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital TERM / TECHNIQUE DEFINITION APPLICATIONS ADVANTAGES DISADVANTAGES Open Account Terms Seller makes shipment and awaits

More information

RECEIVABLES FINANCING

RECEIVABLES FINANCING RECEIVABLES FINANCING Asset-Based Financing Strategies 2015 Practising Law Institute February 27, 2015 Scott A.Lessne Crowell & Moring LLP I. The Role of Receivables in Asset- Based Lending A. What are

More information

TARBOX LAW, P.C. 2301 Broadway Lubbock, Texas 79401 Phone - (806) 686-4448 Fax - (806) 368-9785 CONTRACT FOR CHAPTER 13 BANKRUPTCY SERVICES

TARBOX LAW, P.C. 2301 Broadway Lubbock, Texas 79401 Phone - (806) 686-4448 Fax - (806) 368-9785 CONTRACT FOR CHAPTER 13 BANKRUPTCY SERVICES TARBOX LAW, P.C. 2301 Broadway Lubbock, Texas 79401 Phone - (806) 686-4448 Fax - (806) 368-9785 1. Type of Bankruptcy. CONTRACT FOR CHAPTER 13 BANKRUPTCY SERVICES Debtor retains attorney to file a Chapter

More information

PROOF OF CLAIM AND RELEASE FORM. Blitz v. AgFeed Industries, Inc. c/o Claims Administrator PO Box 3207 Portland, OR 97208-3207 Tel: 800-625-7675

PROOF OF CLAIM AND RELEASE FORM. Blitz v. AgFeed Industries, Inc. c/o Claims Administrator PO Box 3207 Portland, OR 97208-3207 Tel: 800-625-7675 Blitz v. AgFeed Industries, Inc. c/o Claims Administrator PO Box 3207 Portland, OR 97208-3207 A. GENERAL INSTRUCTIONS & INFORMATION PROOF OF CLAIM AND RELEASE FORM 1. You are urged to read carefully the

More information

The SemCrude Bankruptcy's Many Lessons For Energy Traders

The SemCrude Bankruptcy's Many Lessons For Energy Traders Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com The SemCrude Bankruptcy's Many Lessons For Energy

More information

Bankruptcy and Restructuring

Bankruptcy and Restructuring doing business in Canada 102 p Bankruptcy and Restructuring 1. Legislation and Court System The Canadian bankruptcy and insolvency regime is divided between the federal and provincial levels of government

More information

Avoiding Forfeiture of Estate Causes of Action Triggered by Conversion to Chapter 7. May/June 2007. Benjamin Rosenblum

Avoiding Forfeiture of Estate Causes of Action Triggered by Conversion to Chapter 7. May/June 2007. Benjamin Rosenblum Avoiding Forfeiture of Estate Causes of Action Triggered by Conversion to Chapter 7 May/June 2007 Benjamin Rosenblum The ability to borrow money during the course of a bankruptcy case is an important tool

More information

adversary proceeding - A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court.

adversary proceeding - A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. Terminology adversary proceeding - A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. assume - An agreement to continue performing duties under

More information

PROOFS OF CLAIM AND CLAIM SUPPLEMENTS Comment 1: Rule 3002 - Change in timing for Proofs of Claim by mortgagees

PROOFS OF CLAIM AND CLAIM SUPPLEMENTS Comment 1: Rule 3002 - Change in timing for Proofs of Claim by mortgagees 625 The City Drive, Suite 310, Orange, CA 92868 PHONE: (800) 635-6128 OR (714) 838-7167 FAX: (714) 573-2650 info@usfn.org www.usfn.org Board of Directors Michael L. Zevitz President Edward W. Kirn, III

More information

PROOF OF CLAIM AND RELEASE

PROOF OF CLAIM AND RELEASE Must Be Postmarked No Later Than November 6, 2015 In re Delcath Systems, Inc Securities Litigation c/o Garden City Group, LLC PO Box 10189 Dublin, OH 43017-3189 1-888-470-0243 wwwdelcathsecuritieslitigationcom

More information

The 503(b)(9) Claim and Reclamation Rights

The 503(b)(9) Claim and Reclamation Rights The 20-Day Goods Priority Claim Under Bankruptcy Code Section 503(b) (9): The Complexities of a Seemingly Simple Statute By: Bruce S. Nathan, Scott Cargill, & Eric H. Horn Abstract Bankruptcy Code section

More information

PROOF OF CLAIM AND RELEASE FORM

PROOF OF CLAIM AND RELEASE FORM A. GENERAL INSTRUCTIONS & INFORMATION PROOF OF CLAIM AND RELEASE FORM 1. You are urged to read carefully the accompanying Notice of Pendency of Class Action and Proposed Settlement, Settlement Fairness

More information

Defending Preference Claims: What s Mine is Mine What s Yours is Negotiable

Defending Preference Claims: What s Mine is Mine What s Yours is Negotiable Defending Preference Claims: What s Mine is Mine What s Yours is Negotiable By William B. Creim and Laurie K. Jones Introduction This article discusses practical strategies for trade creditors who receive

More information

Modification of Automatic Stay to Permit Litigation to Proceed Remains Possible

Modification of Automatic Stay to Permit Litigation to Proceed Remains Possible A M E R I C A N B A N K R U P T C Y I N S T I T U T E JOURNAL Issues and Information for Today s Busy Insolvency Professional Modification of Automatic Stay to Permit Litigation to Proceed Remains Possible

More information

The Landlord s Lien: An Often Overlooked Remedy For a Tenant's Default

The Landlord s Lien: An Often Overlooked Remedy For a Tenant's Default The Landlord s Lien: An Often Overlooked Remedy For a Tenant's Default Lisa A. Rosen, Esq. Sheila R. Novak, Esq. Thomas M. Tracy, Esq. The recent slowdown in the economy makes it almost certain that there

More information

NACTT ACADEMY TOOLBOX. A QUICK REFERENCE GUIDE to Selling Property While in Chapter 13 *

NACTT ACADEMY TOOLBOX. A QUICK REFERENCE GUIDE to Selling Property While in Chapter 13 * I. SUMMARY: NACTT ACADEMY TOOLBOX A QUICK REFERENCE GUIDE to Selling Property While in Chapter 13 * Beverly M. Burden, Chapter 13 Trustee, Lexington, KY Before a consumer debtor in chapter 13 may sell

More information

Chapter 12 is a reorganization for family farmers and fishing families, which is similar to Chapter 13.

Chapter 12 is a reorganization for family farmers and fishing families, which is similar to Chapter 13. GENERAL INFORMATION ABOUT THE BANKRUPTCY SYSTEM INCLUDING THE RIGHTS AND DUTIES OF CHAPTER 13 DEBTORS (and other information necessary to assist a debtor in completion of the chapter 13 plan) WHAT IS BANKRUPTCY?

More information